The Top “Must-Do” Real Estate Investing Tips

As a seasoned real estate investor with over 30 years of industry experience, new investors often ask me for real estate investing tips. After years of seeing investors enter and leave the industry, I’ve learned a few common traits and practices that separate the successful investors from those that don’t stick with it.

I’ve identified seven “Must Do” real estate investing tips to help new investors more smoothly enter the business or transition a struggling business with an improved approach that offers clarity and a renewed vision.

“Must Do” Real Estate Investing Tips

Create a Manageable Plan

While I have a long-term vision for my real estate investing business, I like to create short term plans for no more than one year at a time. For instance, if your goal is to complete two fix and flips over the next 12 months, how will you accomplish this goal? Focus on the details that you need to understand to meet your stated goal. How will you locate each property? What team do you need to complete the project? You need predictability in your real estate business that leads to consistency.

A plan won’t work unless you build the details behind it and reverse engineer it. Take the time to learn how to create a predictable and consistent business plan. Invest in courses and training designed to educate and execute solid real estate investment plans.

Understand and Research the Markets

Market knowledge matters with real estate investing success. Not all markets work well for the different investment strategies. For example, some locations work better for buy and hold, while others are better for wholesaling. Then, once you understand the best strategies for each specific area, you need to research within those areas.

It is too risky to try and invest in real estate without doing the proper research. Thankfully, market data and industry websites make this information available. For example, the National Association of Realtors is a good resource for reliable data.

Be Honest and Protect Your Reputation

Real estate investing isn’t known for the best reputation. And, sometimes it’s rightfully deserved. Greed and a lack of integrity have always been a problem when it comes to real estate. But, you don’t have to operate that way. In fact, honesty and transparency offer a much better path to success and longevity in real estate investing.

You can be successful and make a lot of money in this business by being honest and trustworthy. Keep your word, follow the legal regulations and do the work with transparency. In the end, an honest approach pays off.

Use What Works

You can pave your own path while still following in proven footsteps. It is much easier and foolproof to learn from the success of other real estate investors. You don’t need to reinvent the wheel. Instead learn from the mistakes and pitfalls those who came before you already experienced.

I had no choice back in the 1980’s when I started in real estate. The industry didn’t have mentors, especially female mentors. Also, there wasn’t training available as a guide. I had a long learning curve! This is one reason I’m passionate about helping other real estate investors learn. Take advantage of training and coaching to help you learn the ropes and avoid common mistakes in real estate investing.

Find Your Niche and Develop Your Brand

Once you learn, create a plan and research your desired markets, then create your niche and unique brand. Real estate investing is a dynamic business where things change all the time. Just look at how virtual real estate investing has taken off recently. Identify what works well for you and create your business by differentiating your brand and approach.

I stumbled into the concept of wholesaling by chance before wholesaling was even a strategy. I embraced wholesaling and became a pioneer in this field. I met a person in the industry who was selling contracts without closing on the properties by doing double closings. I liked the idea and decided to make it my own by perfecting the method in a way that worked best for me. I helped build a unique strategy while creating a niche market.

Embrace the Relationship Side of the Business

I believe technology and streamlining processes are important in real estate investing. However, automation should not replace human interaction, which is the most important part of this business. Real estate is a “people’s business.”

Your personality, your brand and your vision are crucial to the longevity and success of your real estate career. Use automation, but don’t let it replace you and what personal connection brings to your business and brand. It’s better to grow more slowly and create a solid business with personal connection and loyalty, than to grow large quickly without brand loyalty. Don’t lose sight of who you are and what your business is about.

Continue Your Industry Education

As I stated earlier, real estate investing is a dynamic business that evolves over time. To stay relevant, think ahead and stay informed. Try new approaches, but know when it is time to let go of methods that don’t work. One way to stay on top of industry knowledge and trends is with continuing education and network groups. If you want to find continued success, then continue to learn and adapt with the changing industry.

Real estate investing success takes much more than strategies and mechanics. Real estate success requires a deeper understanding of the industry and relationships within the industry. Take the time to learn and ask question of those of us who have already paved the path to successful real estate investing.